UnileverPitch

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Innovation, growth, and strategyT R I N I T Y S M F

Sector Manager: Dina Abu-RahmehSenior Analyst: Cian Mulcahy

Analysts: Vivien Teszler, Iain Pollock, and Dylan Byrne

T R I N I T Y S M F

Investment Thesis

EmergingMarkets

Acceleratedevolutionofportfolio

GrowthinTargetMarket

StrongCashFlow

Business OverviewTRINITY SMF

T R I N I T Y S M F

Company Snapshot

Recommendation BUY

CurrentPrice $57.76PriceTarget $62.66Upside 9.72%

Timeline 1Year

MarketCap. 168.7Bil52wkrange 38.78- 61.62

P/E 23.4

Div.Yield 2.71%

Analyst Consensus Outperform

T R I N I T Y S M F

Unilever V.S. MSCI world index and MSCI Consumer Staples

Blue:Unilever

Red:MSCIWorldIndex

Orange:MSCIConsumerStaplesIndex

Outperform

T R I N I T Y S M F

Company OverviewLeadingtransnationalconsumersgoodcompanyandmarketerforfood,beverages,cleaningagents,andpersonalcareproductsunderknownbrandnames

Sellsproductsinmorethan190countries,operatesinover100countries,employingaround169,000people

Majormarkets:ASIA/AMET/RUB,AmericasandEurope

Organisedinto4categories;PersonalCare,Foods,HomeCare,andRefreshment

Diversifiedbrandportfolioà ownapproximately400brands

12sustainablelivingbrandsdeliverednearlyhalfofUnilever’sgrowth

38%

24%

19%

19%

RevenueBreakdownbySegment

Personalcare Foods Homecare Refreshment

38%

24%

19%

19%

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Company overview- Segments and Markets

80%ofsalesinemergingmarkets

PersonalcarebrandisDove

strategyofstronginnovation

€1billionbrandssuchasHeartbrand(e.g.Wall’s),MagnumandLipton

acquiredorganicteabrands

RefreshmentPersonalCare Food

grocerysegment

BrandslikeHelmannandBece

Performancedrivenbydressingsà ‘easyouttechnology’andorganicvariantsandcookingproductsinemergingmarkets

HomeCare

T R I N I T Y S M F

Strategy

Connected4Growth

USLP

NetRevenueManagement

Zero-Based-Budgeting

Helpover1billionpeopleimprovetheirhealthandwellbeingby2020

Halfenvironmentalimpactofproductsacrossvaluechain

Enhancelivelihoodofmillions

T R I N I T Y S M F

Acquisitions

HomeCare PersonalCare

August2016

October2016

February2017

August2017

Refreshment

September2017

T R I N I T Y S M F

Future Plans

PersonalCare Refreshment

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Industry and Competitive positioning

FinancialsTRINITY SMF

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Income Statement- Revenue

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MillionsUSD

Revenue

Revenue Netincome EPS

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Income Statement- Profitability

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Profitability

Grossmargin% OperatingMargin%

DebtAnalysis

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2012 2013 2014 2015 2016 2017latestquarter

FreeCashFlowvsYear

D/E FCF

RatingsAgency Longtermdebt

Moody’sInvestorService

A1

StandardandPoor’s A+

FitchRatings A+

ValuationTRINITY SMF

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T R I N I T Y S M F

Implied Multiples ValuationCompanyName P/E Fwd.P/E P/B P/S P/CF EV/EBITDA

Nestle 28.4 21.3 4.3 3 19.3 16.49

HenkelAG&Co 20.5 21.5 3.0 2.2 17.6 14.14

Clorox 24.8 22.2 29.4 2.9 18.5 14.28

Procter&GambleCo 23.6 19.6 4.2 3.7 17.9 13.89

ReckittBenckiserGroupPlc 21.9 23.4 5.6 4.4 17.8 17.68

Colgate-PalmoliveCo 27.7 22.9 - 4.2 20.5 15.49

Johnson&Son 23.9 17.5 5.0 5.1 17.5 15.90

Church&DwightCoInc 25.7 21.0 5.7 3.2 19.7 14.73

KraftandHeinzCo 24.9 20.3 1.7 3.7 23.1 15.30

PeerMedian 24.8 21.3 4.65 3.7 18.5 15.3

Unilever 23.4 19.9 8.5 2.5 18.3 15.52

ImpliedPrice 61.22 61.82 31.60 85.48 58.39 56.94

ImpliedPrice: $59.24

ImpliedUpside: 2.57%

T R I N I T Y S M F

DCF Valuation

WACC 5.90%

Terminalgrowthrate 2%

PresentValueofFCF's 25,607

TerminalValue 198,443

ImpliedEnterpriseValue 224,051

Debt+Minorityinterest- CCE 36,067

ImpliedEquityValue 187,984

Impliedprice 63.72

Currentprice 55.84

Upside 14%

Historic ProjectedYears 2014 2015 2016 2017 2018 2019 2020 2021

FreeCashFlow 5,543 7,330 6,125 5,672 6,846 7,790 9,543 11,007%Change 29.9% 32.2% -16.4% -7.4% 20.7% 13.8% 22.5% 15.3%Period 1 2 3 4 5Discountrate 94.4% 89.2% 84.2% 79.5% 75.1%PVofFCF 5,356 6,104 6,559 7,588 8,264

EV/EBITDAModelLow Base High

EV/EBITDA 13.79 15.11 16.43

EV 175013.1 191745.9 208478.7-MinorityInterest 0 0 0

- NetDebt 297

ValueofEquity 175013.1 192042.9 208478.7

No.Shares 2,950 2,950 2,950

PerShareValue 59.33 65.10 70.67

PotentialUpside 2.71% 12.71% 22.35%

RiskTRINITY SMF

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T R I N I T Y S M F

Qualitative Risk

ØBrexit

ØPoliticalInstability

ØFoodpricefluctuations

ØExchangerisk

ØConsumertaste

QuantitativeRisk1%VaR

ConfidenceLevel 99%

VaR -0.03192

VaR % 3.19%

InvestmentAmount 2000

Valueat $63.84

1Yr

Volatility 0.014485

Skew 3.490838

Kurtosis 41.61939

Beta 0.83

Unilever MSCIWorldIndex

Average 0.00177992 0.00071233

StandardDeviation 0.01448541 0.00369443

CorrelationAnalysis

Name Ticker UN WMT GLB KXI

UnileverNV UN - 0.13 0.06 0.66

WalmartInc. WMT 0.13 - 0.03 0.37

Glanbia GLB 0.06 0.03 - 0.06

MSCIConsumerIndex KXI 0.66 0.37 0.06 -

T R I N I T Y S M F

Investment Thesis

EmergingMarkets

Acceleratedevolutionofportfolio

GrowthinTargetMarket

StrongCashFlow

Thank youTRINITY SMF